DAO | Textbook Rounded Bottom Signals Start of Major Bull CycleHere we have a clear and technically significant bottom on the DAO/USDT chart—a true rounded bottom structure that signals the end of a prolonged bear cycle and the potential beginning of a strong bullish trend.
This bottom is "perfect" in its structure: It follows a textbook pattern. Initially, we see some bullish action—an impulse wave that sets the stage. What follows is a sharp decline, broken up by a period of consolidation—a rest phase that is characteristic of major downtrends. Then comes the final leg down, culminating in a new All-Time Low at $0.099. From this point, DAO begins to round out, forming a clean and smooth bottoming curve that marks a clear shift in market sentiment.
The rounded bottom not only indicates exhaustion of selling pressure but also a potential accumulation phase. DAO is now trading at deeply discounted levels compared to previous market phases—still below historical price levels from early and mid-2023. The current price action is only revisiting the first minor bounce zone seen back in late 2023, which reinforces the idea that this is truly a bottomed-out asset.
The structure suggests that the recovery will gain traction and transition into a full-fledged bull market. The chart outlines clear Fibonacci-based targets, ranging from modest gains of 242% to a massive 4,431%, with potential for even more if momentum carries DAO to new highs. These targets are conservative when viewed in the context of historical cycles. Even the mid-range target of $4.50 already presents a 10X opportunity from current levels, indicating massive growth potential for the long-term investor or strategic trader.
On the daily timeframe, DAO/USDT is presenting a bullish reversal pattern in the form of an Inverse Head and Shoulders, further validating the broader rounded bottom structure seen on the weekly chart. This is a classic technical signal that often precedes a significant trend reversal, especially after a prolonged downtrend like the one DAO has experienced.
The pattern is well-defined:
The Left Shoulder formed in early March 2025 after an aggressive selloff.
This was followed by a deeper low—the Head—which printed the current All-Time Low near $0.099 in late March.
The Right Shoulder developed in late April to early May, holding a higher low and indicating waning bearish momentum.
What makes this setup compelling is that the neckline—around the $0.175–$0.18 region—is being tested. A successful breakout above this resistance would confirm the pattern and potentially trigger a strong bullish move. The height of the pattern projects a measured move toward the $0.26–$0.28 range initially, with further continuation aligning with weekly targets beyond $0.50.
This inverse head and shoulders, nested within the larger rounded bottom on the weekly chart, provides a powerful confluence of bullish signals. DAO/USDT appears to be transitioning from accumulation to the beginning of a possible trend reversal. If confirmed with volume and momentum, the breakout could mark the start of a sustained bullish phase.
